Wells Fargo To Pay $1.2 Billion To Resolve Claims Related To FHA Lending Program

By Tomi KilgoreMarketWatch Pulse

Wells Fargo & Co. said Wednesday it agreed to pay $1.2 billion to resolve certain civil claims government regulators had pending against the company. The claims were related to the bank's Federal Housing Administration lending program from 2001 through 2010, and other potential civil claims. As a result of the payment, Wells Fargo said it reduced its 2015 earnings by $134 million, or 3 cents a share. "Although the company and the Federal Government have reached an agreement in principle to resolve these matters, there can be no assurance that the company and the Federal Government will agree on the final documentation of the settlement," Wells Fargo stated in a regulatory filing. The stock, which tacked on 0.5% in premarket trade, has dropped 9.4% over the past year, while the S&P 500 has lost 7.2%.

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